Let us SEE What is NOT Obvious.
We know Bitcoin’s price tanked on Friday along with everything else… So?
Let’s read what the MARKET is telling us via Bitcoin Traders’ own market data, without making a lot of knee-jerk assumptions.
Why Compare Price to Indicators?
Well, because a market is always Doing, Testing, and Proving its strength or weakness about what it just did.
And no, I’m not referring to tests by Price alone or the relative infrequent simple double-tops or double-bottoms. Tests and Proofs happen continuously and simultaneously. And they are quite predictive. Says Charlie Whooph, Equities daily swing trader since 1999. And says George Lane, Commodities Trader and Inventor of The Stochastic.
Of Stochastic, George Lane highlights:
Price has MOMENTUM;
Stochastic does NOT.
PRICE v. MACD
When an uptrend makes higher highs in both PRICE and INDICATOR like MACD, therefore trending in the same direction, Whooph calls that agreement. And it’s indicative of strength, not weakness…not just yet.
Bitcoin’s Reset
Bitcoin in August proved weakness in Wave 5 and thus responded with an ABC corrective pull-back, Stochastic dipping below 25 (briefly bearish) and RESET by Stochastic recapturing 75-100, which Whooph terms the “top section” of the Upper Op Area (UOA) ranging 25-100. And in late September, Stochastic rejected the 0-25 of the Lower Op Area. Continuously and simultaneously testing and proving. All highly predictive of what should occur next.
Elliott Wave 1
What’s also inherently predictive is the continual intrinsic reality of Ralph Nelson Elliott’s Wave structure. Showcased here on October 6th - Elliott Wave 1. “Oh, I know — it’s all Hooey and Bunk.” Well, Whooph began trying to DISprove the Wave Theory back in 1999. Now, 45000 charts and 6500 trading days later, Whooph says, “Good luck, Elliott Wave Skeptics! Ya better off calling Law.” As an engineer, Whooph knows the difference!
How NOT to Parse Waves
Whooph is happy to share how’s the best way to PARSE Elliott Waves, and it ain’t by dicing up price. Do it that way and you’re gonna need Tylenol Extra! Hint: Waves are continuously painting in ALL timeframes. Impulse and Reactive Waves 1-5 and Corrective Waves A,B,C.
Conclusion
Markets continuously Do, Test, and Prove. Using this truth with careful parsing of waves and predictive analysis of Price-Indicator Divergence and Comparison, Whooph trades. And he’s happy to share how he consistently beats the market.
We have yet to see Waves 3 and 5 of this Bitcoin uptrend, just starting. And you can bet, we’ll keep an eye on it.
Let the market’s price action govern, yet don’t ignore when Indicators tell !
Another brilliant one, Charlie. Always enjoy your reads and really appreciate your support along the way.